The Federal Board of Revenue (FBR) has issued a cautionary alert to the general public, urging them to be vigilant against harmful and fake emails circulating under the guise of official communications.
(more…)Author: Mrs. Anjum Shahnawaz
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KCCI demands restoration of normal business timings
KARACHI: Karachi Chamber of Commerce and Industry (KCCI) on Saturday demanded the government of Sindh to restore business timings for markets during the holy month of Ramazan ul Mubarak as restriction imposed on timings may result in disastrous for traders and shopkeepers.
Chairman Businessmen Group (BMG) Zubair Motiwala and President Karachi Chamber of Commerce and Industry (KCCI) Shariq Vohra, while expressing sheer dismay over Sindh Govt’s decision to allow limited business timings from Sheri to 6:00PM and complete closure of businesses on Saturdays and Sundays, urged to revoke the relevant notification without further loss of time and allow all types of businesses to operate at full capacity throughout Ramazan otherwise the people, instead of dying due to diseases caused by coronavirus, would die themselves because of poverty, unemployment, mental stress, hunger or starvation.
In a statement issued, Chairman BMG and President KCCI stated that they have been urging the Sindh Government through letters to avoid imposing such unpopular decisions at a very crucial time as this was the peak season and if businesses are disallowed to carry out activities for two consecutive days and compelled to observe limited business timings during the remaining working days, it will prove to be disastrous for them throughout next year.
“We have sent letters to Chief Minister Sindh, Local Govt. Minister, Chief Secretary and Commissioner Karachi and also dropped messages from time to time but haven’t received any response which is a bit disappointing as we were not expecting this kind of response from Sindh Govt. which has always responded to KCCI’s pleas”, said Zubair Motiwala Chairman BMG, “Closure of businesses for two consecutive days and allowing them to operate with limited timings during the remaining days would result in bankrupting many businesses, trigger massive unemployment and chaos.”
Referring to large number of complaints being received from the shopkeepers of almost all the commercial markets of Karachi who were constantly seeking KCCI’s assistance, Chairman BMG stressed that the government has to come up with some other feasible solution which could save everyone from the pandemic and also ensure zero damage to the poor shopkeepers and small traders who cannot afford any further shocks. “In this regard, the business and industrial community is ready to fully comply with all the SOPs but closure would bring much more difficulties and miseries than opening and controlling the pandemic through the implementation of SOPs”, he added.
He further said, “These are challenging times and every member of the civil society is facing problems due to COVID crises. Perhaps, it is time when the government should think about extending monetary help to citizens especially the small shopkeepers who are now in net debt position and even paying rents to owners of their business premises has really become difficult.”
“It is the finding of our Research Department that many shopkeepers have already gone bankrupt and they are running their businesses in anticipation that this season of Ramazan will pull them out of crises. Hence, it is imperative that government should understand the real situation faced by the trading community”, he added.
“Yes! it is necessary to implement but these SOPs, as the trading argues, are not seen on roads, mosques, public places and big shopping malls. In such a situation, how Karachiites will be saved from COVID if they are closed for two days”, Zubair Motiwala questioned.
Chairman BMG, therefore, stressed that the notification must be immediately withdrawn while the administration should be effectively utilized for strict implementation of the Standard Operating Procedures (SOPs). “If the administration was able to strictly get the lockdown enforced last year, then why it is not being used for strict implementation of SOPs”, he asked, adding that the Sindh government will have to alleviate the predicament of businessmen instead of aggravating them.
President KCCI Shariq Vohra also cautioned that shutting down shops for two days and limited business hours would lead to creating a chaotic situation as the people would find no other option but to come out on streets to protest due to rising unemployment and poverty.
Keeping in view the overall situation and grievances suffered by the business and industrial community, President KCCI hoped that the Sindh government would look into this serious issue and take steps to save businesses and the economy from further disaster.
On behalf of the entire business community of Karachi particularly the small traders and shopkeepers, Chairman BMG and President KCCI appealed the government to review the decision to shut down all types of commercial/ business activities for two consecutive days a week and allowing limited business hours till 6:00PM which is tantamount to mass killing of the already perturbed small traders and shopkeepers who are in deep crises and struggling really hard to somehow keep their businesses alive.
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Sharp growth recorded in import of CBU, CKD motor cars
ISLAMABAD: A sharp growth has been witnessed in import of motor cars in the categories of Completely Build Unit (CBU) and Completely Knocked Down (CKD) during first nine months (July – March) of 2020/2021.
The import of motor cars in both the categories recorded over 100 percent growth.
According to data released by Pakistan Bureau of Statistics (PBS) the import of CBU motor cars increased by 149 percent to $161.21 million during first nine months of the current fiscal year as compared with $64.8 million in the corresponding period of the last fiscal year.
Similarly, the import of CKD cars increased by 113 percent to $733 million during July – March 2020/2021 as compared with $343.4 million in the same period of the last fiscal year.
Analysts said that import of CBU cars increased due to ease in air travel restrictions after reduction in coronavirus cases globally.
Besides, the import of CKD cars can be attributed to acceleration in domestic industrial activities after lifting of lockdown that was imposed to prevent spread of coronavirus cases.
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Country spends Rs248bn on mobile phones import
ISLAMABAD: Pakistan has imported mobile phones worth Rs248 billion during first nine months (July – March) of 2020/2021 owing to rise in demand of devices for digital financial system.
According to data released by Pakistan Bureau of Statistics (PBS) on Saturday, the country imported mobile phones worth 248 billion during July – March 2020/2021 as compared with 153 billion in the corresponding period of the last fiscal year, showing an increase of 62 percent.
The strong value of the dollar during the period forced higher import payment in terms of the Pak Rupee. The import of mobile phones in terms of US dollar increased by 56.74 percent to $1.53 billion during July – March 2020/2021 as compared with $980 million in the corresponding period of the last fiscal year.
Market sources said that coronavirus pandemic had limited the physical movement, which had given rise to online transactions. Mobile phones have played a major role in promoting the digital economy.
Further, the implementation of laws making it mandatory that only verified mobiles through the Pakistan Telecommunication Authority (PTA) to be activated for local services has also discouraged informal channels for the import of mobile phones.
They said that the depreciation of the Pak Rupee had also an impact on the surge of mobile phone imports.
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Pakistan exports textile products worth $11.35bn in nine months
KARACHI: Pakistan has exported textile products worth $11.35 billion during first nine months (July – March) 2020/2021, showing 9 percent growth, according to data released by Pakistan Bureau of Statistics (PBS) on Saturday.
The exports of textile products during the first nine months of the last fiscal year were at $10.41 billion, the PBS reported.
In terms of volume the export of knitwear was on the top in textile exports. The country exported knitwear products worth $2.78 billion during first nine months of the current fiscal year as compared with $2.29 billion in the corresponding months of the last fiscal year, showing a growth of 21 percent.
The export of readymade garments was recorded at $2.27 billion during July – March 2020/2021 as compared with $2.17 billion in the corresponding period of the last fiscal year.
The export of bedwear recorded 16.5 percent growth to $2.05 billion during first nine months of the current fiscal year as compared with $1.76 billion in the corresponding period of the last fiscal year.
The export of textile products in the month of March 2021 recorded 30 percent growth to $1.35 billion when compared with $1.04 billion in the same month of the last year.
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FBR urged to revise slabs for advance tax collection on motor cars
KARACHI: Federal Board of Revenue (FBR) has been urged to revise slabs of engine capacity of motor cars to give benefit to buyers in payment of withholding tax.
Overseas Investors Chamber of Commerce and Industry (OICCI) in its proposals for budget 2021/2022 submitted to the FBR, said that advance tax under section 231B of Income Tax Ordinance, 2001 is collected by manufacturers on following categories:
On engine capacity 1001cc to 1300cc the advance tax is collected at Rs25,000.
While on engine capacity 1301 cc to 1600cc the advance tax is collected at Rs50,000.
OICCI recommended that as locally manufactured sedans passenger cars fall slightly above the 1300cc category the slightly higher engine capacity size results in these vehicles falling in higher tax bracket making it more expensive with higher upfront cost to customers.
Amendment should be made in the categories of vehicles mentioned in Division VII of Part IV of First Schedule as follows:
On engine capacity 1001cc to 1350cc the advance tax rate should be Rs25,000.
While on engine capacity 1351 cc to 1600cc the advance tax rate should be Rs50,000.
In its proposals for auto sector, the OICCI recommended that minimum tax rate should be reduced to 0.2 percent for authorized dealers of local vehicle manufacturers as they have high turnover and low margins.
The OICCI further said that exempt imports made under SRO 655(I)/2006 & SRO 656(I)/2006 from ACD levied vide SRO 1178 (I) 2015 and enhanced vide SROs 630 (I)/2018 and 670 (I)/2019.
Federal Excise Duty (FED) on locally manufactured vehicles should be withdrawn.
Levy of FED on locally manufactured vehicles be withdrawn by deleting the serial no. 55B of Table I of First Schedule to the Federal Excise Act, 2005 as it has resulted in significant increase of sales price of vehicles with consequential reduction in sales volume of the respective vehicle categories.
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Weekly Review: market to remain bullish
KARACHI: The stock market likely to move in positive zone during next week owing to financial results and improved exchange rate.
Analysts at Arif Habib Limited said that the market to remain bullish in the upcoming week. With the commencement of result season, we believe Oil and cyclical sectors will be under limelight on the back of healthy earnings expectations.
Additionally improvement in macroeconomic indicators and appreciation of PKR/USD parity will keep investors’ sentiments positive.
However, any further increase in domestic COVID-19 infection ratio may dampen investor’s sentiments.
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) is currently trading at a PER of 6.8x (2021) compared to Asia Pac regional average of 16.3x while offering a dividend yield of around 7.1 percent versus 2.6 percent offered by the region.
This week trading commenced on a negative note with the index retreating by 208 points on Monday amidst the ongoing third wave of Covid-19 (threat of lockdown as per NCOC’s proposal given rise in infection ratio).
However, bulls took charge on Tuesday as positive sentiments were fueled by i) Slowdown in infection ratio, ii) Surge in international oil prices by 3.6 percent WoW resulting in buying across heavy-weight E&P scrips, iii) Expectation of outstanding quarterly results, iv) Large Scale Manufacturing inching up by 7.45 percent in 8MFY21, and v) Forex reserves climbing to a 5-year high of $23.2 billion. The KSE-100 index closed at 45,306 points, up by 119 points or 0.26 percent WoW.
Contribution to the upside was led by i) Commercial Banks (81 points), ii) Technology and Communication (78 points), iii) Fertilizer (43 points), iv) Automobile Assemblers (25 points), and v) Oil and Gas Exploration Companies (18 points). Scrip-wise major gainers were TRG (60 points), FFC (60 points), BAHL (22 points), EFERT (21 points), and HBL (20 points). Whereas, scrip-wise major losers were ENGRO (47 points), HUBC (27 points), PSO (27 points), SEARL (21 points) and DGKC (20 points).
Foreigners offloaded stocks worth of $1.0 million compared to a net sell of $9.5 million last week. Major selling was witnessed in all other Sectors (USD 2.64mn) and Commercial Banks (USD 1.31mn). On the local front, buying was reported by Individuals (USD 9.77mn) followed by Other Organization (USD 3.91mn). That said, average daily volumes and traded value for the outgoing week were down by 10 percent and 18 percent to 368mn shares and USD 100mn, respectively.
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Only FBR registered cigarette brands to be sold in Pakistan: Member IR Operation
ISLAMABAD: Dr. Muhammad Ashfaq Ahmed, Member (Inland Revenue Operations) has said that authorities were in process of drafting new rules where-under cigarette brands registered with FBR could only be sold in Pakistani markets.
He said during his visit to Regional Tax Office (RTO) Rawalpindi on Friday where the tax office had seized two trucks which were illegally transporting non-tax paid counterfeit cigarettes for supply into local market.
The Member said that from July 1, 2021, Track & Trace System would be rolled out to cover tobacco manufacturing across the country, and that AJK Government had approached Federal Board of Revenue to extend the scope of Track & Track System to cigarette manufacturing units located inside AJK territory.
It is expected that over the next few months implementation of Track & Trace System and its extension into AJK, coupled with IREN’s valiant drive would help overcome the menace of counterfeit, illicit and non-tax paid cigarettes in the market.
Dr. Muhammad Ashfaq Ahmed appreciated Dr. Khalid Mahmood Lodhi, Chief Commissioner, RTO, Rawalpindi and his enforcement drive to curb movement of illicit cigarettes on the roads. He also announced special reward for the members of the raiding squad and encouraged them to continue working with full commitment and integrity.
According to details the trucks were loaded with 300 cartons of counterfeit cigarettes of Classic Brand, and 300 cartons of counterfeit cigarettes of Kissan Brand containing 6 million cigarette sticks. Market value of the seized cigarettes comes to Rs. 18,900,000/- involving unpaid duties and taxes at Rs. 12,646,500/-. Some of the counterfeit cigarette brands are manufactured in AJK, and then transported across into Pakistani markets without payment of duty and taxes.
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Highest monthly complaints of banking frauds, forgeries register in March 2021
KARACHI: The office of Banking Mohtasib Pakistan has said that complaints against banking frauds, forgeries and other regularities were monthly highest received in March 2021 since the inception of Mohtasib office in 2005.
Complaints against banking frauds and forgeries registered massive increase of 135 percent during three months (January – March) of 2021 as compared with same period of the last year.
According to a statement issued on Friday, the office of the Banking Mohtasib Pakistan said that over 135 percent increase had been observed in the number of complaints lodged against alleged frauds, forgeries and other irregularities during the first quarter (January – March) of 2021 as compared to the same period of the last year 2020.
The office of the Banking Mohtasib Pakistan said that 11,732 complaints were received by the Banking Mohtasib Secretariat during the first quarter of 2021 as compared with 4,994 complaints received in the same period of the last year.
“These also include 7,595 complaints received on Prime Minister’s Portal relating to banking issues as compared to 1,411 complaints received during the first quarter of previous year.”
Out of total 11,732 complaints, 5,375 complaints were received in the month of March only, which is the highest figure of complaints recorded in a single month since the inception of Banking Mohtasib Pakistan Office in 2005.
“The increase in number of complaints indicates that the general public feels that their genuine grievances will be resolved amicably by the Banking Mohtasib office,” according to the statement.
The Banking Mohtasib Secretariat disposed of 4,672 complaints from January 01 to March 31, 2021 out of which only two percent of complaints were resolved through formal orders while remaining 98 percent of complaints were resolved amicably.
By disposing of these complaints, the Banking Mohtasib Office has provided monetary relief amounting to Rs132.62 million to the banking customers during the first quarter of 2021.
Banking Mohtasib Pakistan Muhammad Kamran Shehzad urged the general public not to disclose their personal and financial credential to any person in order to protect themselves from any fraud and forgeries.
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Ministry imposes ban on import of conventional syringes
ISLAMABAD: The ministry of commerce on Friday imposed ban on import of conventional syringes with immediate as the government had already granted incentives on import of auto disable syringes through latest amendment to relevant laws.
The ministry of commerce issued SRO 483(I)/2021 dated April 16, 2021 to amend Import Policy Order, 2020.
Through the notification a ban has been imposed on import of conventional syringes including 2 ml, 2.5 ml, 3 ml and 5 ml.
Prior to this through Tax Laws (Second Amendment) Ordinance, 2021, the government had allowed sales tax exemption on import of auto disable syringes including with needles and without needles.
Further, the import of raw materials for the manufacturers of auto disable syringes was also granted sales tax exemption.